88432 Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Notices 

18 17 CFR 200.30–3(a)(12), (59). 

1 15 U.S.C. 80a–1 et seq. 

2 15 U.S.C. 80a–2(a)(41). See also 17 CFR 270.2a– 

4. 

3See 15 U.S.C. 80a–22(c) and 23(c). See also 17 

CFR 270.22c–1(a). 

4See Good Faith Determinations of Fair Value, 

Investment Company Act Release No. 34128 (Dec. 

7, 2020) (‘‘Adopting Release’’). 

5Rule 2a–5(e)(4). 

6Rule 2a–5(b). 7Rule 2a–5(b). 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–BOX–2023–30 and should be 

submitted on or before January 11, 2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–28042 Filed 12–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–xxx, OMB Control No. 

3235–0779] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

2a–5 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that, pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501–3520), the Securities 

and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget a 

request for extension of the previously 

approved collection of information 

described below. 

Section 2(a)(41) of the Investment 

Company Act of 1940 (‘‘Investment 

Company Act’’) 1 requires funds to value 

their portfolio investments using the 

market value of their portfolio securities 

when market quotations for those 

securities are ‘‘readily available,’’ and, 

when a market quotation for a portfolio 

security is not readily available, by 

using the fair value of that security, as 

determined in good faith by the fund’s 

board.2 The aggregate value of a fund’s 

investments is the primary determinant 

of the fund’s net asset value (‘‘NAV’’), 

which for many funds determines the 

price at which their shares are offered 

and redeemed (or repurchased).3

Rule 2a–5 provides requirements for 

determining in good faith the fair value 

of the investments of a registered 

investment company or companies that 

have elected to be treated as business 

development companies under the 

Investment Company Act (‘‘BDCs’’ and, 

collectively, ‘‘funds’’) for purposes of 

section 2(a)(41) of the Investment 

Company Act and rule 2a–4 

thereunder.4 Under the rule, fair value 

as determined in good faith requires 

assessing and managing material risks 

associated with fair value 

determinations; selecting, applying, and 

testing fair value methodologies; and 

overseeing and evaluating any pricing 

services used. The rule also permits a 

fund’s board to designate a ‘‘valuation 

designee’’ to perform fair value 

determinations. The valuation designee 

can be the adviser of the fund or an 

officer of an internally managed fund.5

When a board designates the 

performance of determinations of fair 

value to a valuation designee for some 

or all of the fund’s investments under 

the rule, the rule requires the board to 

oversee the valuation designee’s 

performance of fair value 

determinations. 

To facilitate the board’s oversight, the 

rule also includes certain reporting and 

other requirements in the case of 

designation to a valuation designee.6 As 

relevant here, the rule requires, if the 

board designates performance of fair 

value determinations to a valuation 

designee, that the valuation designee 

report to the board in both periodic and 

as needed reports on a per-fund basis. 

Specifically, on a periodic basis, the 

valuation designee must provide to the 

board: 

• Quarterly Reports. 

At least quarterly, in writing, (1) any 

reports or materials requested by the 

board related to the fair value of 

designated investments or the valuation 

designee’s process for fair valuing fund 

investments and (2) a summary or 

description of material fair value 

matters that occurred in the prior 

quarter. This summary or description 

must include (1) any material changes 

in the assessment and management of 

valuation risks, including any material 

changes in conflicts of interest of the 

valuation designee (and any other 

service provider), (2) any material 

changes to, or material deviations from, 

the fair value methodologies, and (3) 

any material changes to the valuation 

designee’s process for selecting and 

overseeing pricing services, as well as 

any material events related to the 

valuation designee’s oversight of pricing 

services. 

• Annual Reports. 

At least annually, in writing, an 

assessment of the adequacy and 

effectiveness of the valuation designee’s 

process for determining the fair value of 

the designated portfolio of investments. 

At a minimum, this annual report must 

include a summary of the results of the 

testing of fair value methodologies 

required under the rule and an 

assessment of the adequacy of resources 

allocated to the process for determining 

the fair value of designated investments, 

including any material changes to the 

roles or functions of the persons 

responsible for determining fair value. 

Further, the rule requires the 

valuation designee to provide a written 

notification to the board of the 

occurrence of matters that materially 

affect the fair value of the designated 

portfolio of investments (defined as 

‘‘material matters’’) within a time period 

determined by the board, but in no 

event later than five business days after 

the valuation designee becomes aware 

of the material matter. Material matters 

in this instance include, as examples, a 

significant deficiency or material 

weakness in the design or effectiveness 

of the valuation designee’s fair value 

determination process or of material 

errors in the calculation of net asset 

value. The valuation designee must also 

provide such timely follow-on reports as 

the board may reasonably determine are 

appropriate.7

The Commission staff estimates that 

9,800 funds are subject to rule 2a–5. The 

internal annual burden estimate is 34 

hours for a fund. Based on these 

estimates, the total annual burden hours 

associated with the rule is estimated to 

be 333,200 hours. The estimated burden 

hours associated with rule 2a–5 have 

increased by 15,810 hours from the 

current allocation of 317,390 hours. The 

external cost associated with this 

collection of information is 

approximately $3,674 per fund, and the 

total annual external cost burden is 

$36,005,200. The estimated external 

cost has increased by $6,319,900 from 

the current estimate of $29,685,300. 

These increases are due to an increase 

in the estimated number of affected 

entities, as well as in the estimated 

hourly burden and the external cost 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 88, No. 244 / Thursday, December 21, 2023 / Notices 88433 

1 15 U.S.C. 78s(b)(1). 

2 17 CFR 240.19b–4. 

3The Exchange initially filed the proposed 

pricing changes on November 28, 2023 (SR–MRX– 

2023–23). On December 5, 2023, the Exchange 

withdrew that filing and submitted this filing. 

associated with the information 

collection requirements. 

The estimate of average burden hours 

is made solely for purposes of the 

Paperwork Reduction Act and is not 

derived from a comprehensive or even 

a representative survey or study of the 

cost of Commission rules. The 

collection of information required by 

rule 2a–5 is necessary to obtain the 

benefits of the rule. Other information 

provided to the Commission in 

connection with staff examinations or 

investigations is kept confidential 

subject to the provisions of applicable 

law. If information collected pursuant to 

rule 2a–5 is reviewed by the 

Commission’s examination staff, it is 

accorded the same level of 

confidentiality accorded to other 

responses provided to the Commission 

in the context of its examination and 

oversight program. An agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a 

currently valid control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by January 22, 2024 to (i) 

MBX.OMB.OIRA.SEC_desk_officer@

omb.eop.gov and (ii) David Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, c/ 

o John Pezzullo, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: December 18, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–28115 Filed 12–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–418, OMB Control No. 

3235–0485] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

15c2–1 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 15c2–1, (17 CFR 240.15c2–1), 

under the Securities Exchange Act of 

1934 (15 U.S.C. 78a et seq.). 

Rule 15c2–1 prohibits broker-dealers 

from commingling under the same lien 

securities of their margin customers 

with securities of the broker-dealer and 

those of other customers without their 

written consent. The rule also prohibits 

the re-hypothecation of customers’ 

margin securities for a sum in excess of 

the customer’s aggregate indebtedness. 

Respondents must collect information 

necessary to prevent the rehypothecation of customer securities, 

issue and retain copies of notices of 

hypothecation of customer securities, 

and collect written consents from 

customers. 

There are approximately 59 

respondents. Each of these respondents 

makes an estimated 45 responses per 

year and each response takes 

approximately 0.5 hours to complete, 

resulting in an industry-wide annual 

burden of approximately 1,327 hours. 

The retention period for the 

recordkeeping requirement under Rule 

15c2–1 is not less than two years 

following the date the notice is 

submitted. The recordkeeping 

requirement under this rule is 

mandatory to assist the Commission in 

monitoring respondents who fail to 

collect the information required under 

the rule. This rule does not involve the 

collection of confidential information. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent by 

January 22, 2024 to 

(i) www.reginfo.gov/public/do/ 

PRAMain and (ii) David Bottom, 

Director/Chief Information Officer, 

Securities and Exchange Commission, 

c/o John Pezzullo, 100 F Street NE, 

Washington, DC 20549, or by sending an 

email to: PRA_Mailbox@sec.gov. 

Dated: December 18, 2023. 

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2023–28114 Filed 12–20–23; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–99189; File No. SR–MRX– 

2023–25] 

Self-Regulatory Organizations; Nasdaq 

MRX, LLC; Notice of Filing and 

Immediate Effectiveness of Proposed 

Rule Change To Amend Options 7, 

Section 6 

December 15, 2023. 

Pursuant to Section 19(b)(1) of the 

Securities Exchange Act of 1934 

(‘‘Act’’),1 and Rule 19b–4 thereunder,2

notice is hereby given that on December 

5, 2023, Nasdaq MRX, LLC (‘‘MRX’’ or 

‘‘Exchange’’) filed with the Securities 

and Exchange Commission (‘‘SEC’’ or 

‘‘Commission’’) the proposed rule 

change as described in Items I, II, and 

III below, which Items have been 

prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange proposes to amend its 

Rules at Options 7, Section 6, Ports and 

Other Services.3

The text of the proposed rule change 

is available on the Exchange’s website at 

https://listingcenter.nasdaq.com/ 

rulebook/mrx/rules, at the principal 

office of the Exchange, and at the 

Commission’s Public Reference Room. 

II. Self-Regulatory Organization’s 

Statement of the Purpose of, and 

Statutory Basis for, the Proposed Rule 

Change 

In its filing with the Commission, the 

Exchange included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

Exchange has prepared summaries, set 

forth in sections A, B, and C below, of 

the most significant aspects of such 

statements. 


khammond on DSKJM1Z7X2PROD with NOTICES